In This Article:
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Earnings Per Share (EPS): Loss of $0.04 per share for Q1 2025 compared to earnings of $0.15 per share for Q1 2024.
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Customer Growth: Strong customer growth at 2.3% for the quarter.
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Weather-Normalized Sales Growth: 2.1% for the quarter, driven by strong C&I growth of 5.3%.
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O&M Expenses: Higher due to major outage costs at the Four Corners Power Plant and increased IT project expenses.
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New Rates Impact: Provided a $0.29 year-over-year benefit this quarter.
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Transmission Sales: Higher transmission sales contributed positively.
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Guidance for Sales Growth: Expected to meet 4% to 6% for the year.
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Credit Ratings: No changes to current ratings and stable outlooks from credit rating agencies.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Pinnacle West Capital Corp (NYSE:PNW) is benefiting from significant investments in Arizona, including a $100 billion expansion by Taiwan Semiconductor Manufacturing Company (TSMC), which is expected to drive economic growth and job creation.
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The company is making substantial investments in grid reliability and resilience, including high-voltage lines and substations, to support customer growth and ensure reliable service.
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Pinnacle West Capital Corp (NYSE:PNW) has implemented advanced fire mitigation technologies, such as AI-driven fire sensing cameras, to enhance safety and operational decision-making.
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The company is experiencing strong customer growth, with a 2.3% increase in the first quarter, driven by the influx of high load factor customers like manufacturing and data centers.
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Pinnacle West Capital Corp (NYSE:PNW) has maintained stable credit ratings and a positive outlook from credit rating agencies, supporting its financial stability and capital structure.
Negative Points
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Pinnacle West Capital Corp (NYSE:PNW) reported a loss of $0.04 per share for the first quarter of 2025, compared to earnings of $0.15 per share in the same period last year, primarily due to the sale of Bright Canyon Energy.
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Higher operating and maintenance expenses, interest expenses, and depreciation and amortization negatively impacted financial performance.
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The company faces regulatory lag challenges, which it aims to address through a new rate case filing and formula rate proposal, but the outcome and timing remain uncertain.
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Weather-normalized sales growth was offset by a one-time adjustment in January, impacting year-to-date sales growth by 1.9%.
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Pinnacle West Capital Corp (NYSE:PNW) is dealing with increased expenses related to IT projects and planned outages, which contributed to higher operating costs in the first quarter.